Bipartisan legislation was filed in the House and Senate to allow year-round sale of E15, a higher, 15-percent blend of ethanol into gasoline than the traditional 10 percent. At present, E15 cannot be sold during the summer, a factor in this week’s fracture among ethanol trade groups.
The House and Senate bills would waive a rule against selling fuel that evaporates too readily during hot weather. Higher blends of ethanol can be sold during the summer but the fuel has to go through additional and more costly refining. Indiana Sen Joe Donnelly, a sponsor, said the legislation would “eliminate the senseless restriction on ethanol producers and consumers.”
Growth Energy, an ethanol trade group, said E15 is less volatile than E10 but the EPA gave a waiver to E10 years ago.
Meanwhile, Bloomberg reported the White House did not respond directly to questions about the status of discussions about E15 and a proposal to absolve refiners from responsibility for ensuring the federal biofuels mandate is met, known as the “point of obligation.” The White House has said there was no executive order in the works regarding the matter.
White House adviser Carl Icahn, who is an investor in refineries, predicted to Bloomberg that the “point of obligation” will be changed soon. The Renewable Fuels Association was criticized by other ethanol groups for agreeing to support the change if the package included year-round E15.
The Intercept pointed out that “Icahn is the majority owner of CVR Energy, a refiner which does not have the infrastructure to blend ethanol. As a result, CVR must buy renewable fuel credits to comply with their obligation.” CVR spent $205.9 million last year on renewable fuel credits, The Intercept said. “Shifting the point of obligation to blenders would relieve CVR of that expense.”